Business Interruption Insurance, or Business Income Insurance, is one of the most important coverage for a business, but is most often overlooked. It is the coverage that will keep a business up and running or restore it after an event, such as a fire, hurricane or earthquake. Business Interruption Insurance is not a stand-alone policy, but is rather an add-on provision to a comprehensive policy. This coverage will not compensate the physical damage to the business; it covers the profits that would have been made during the period of interruption. Business owners should be certain they inquire about this add-on while getting a cheap insurance quote from their provider.

Business Interruption Insurance may vary from company to company, but will basically cover the following:

• Business Profits – Verified by the businesses prior accounts receivable and/or financial statements
• Operation Expenses – This is determined by previous accounts payable records, such as electricity, phone and/or water bills
• Temporary Operating Costs – Expenses incurred due to operating out of a temporary location while business is being repaired/rebuilt

Due to the volume of insurance companies, it is best for the owner to get further details on what the plan will cover while getting their cheap insurance quote when first obtaining business insurance or adding the Business Interruption Insurance provision to an existing policy. However, regardless of the company, it will only cover the interruption period which is usually defined as the first day of damage through the first day of restored normal operating conditions.

Again, to purchase Business Interruption Insurance is imperative for any business, especially small businesses and it is not a stand-alone policy. This must simply be added to a property or comprehensive policy as an add-on.

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Personal Liability
We all have responsibilities when it comes to living in a society.  If you own a home, you must maintain it properly to avoid affecting the value of other properties in your neighborhood.  If you drive a car, you must operate it in a reasonable manner to make sure you are putting no one at risk of injury.  If you own a company, you must conduct business in a fair and safe manner.  Failing to abide by these societal expectations can cost you, both personally and professionally. The purpose of insurance is to protect the person or the business entity from financial harm.

Business Insurance Plan
Owners of a business should have a plan to protect the assets of the company as well as those of the individual owners.  While there are many types of insurance for small business, here are the primary categories:

• Property insurance
• Liability insurance
• Health insurance

Business Property Insurance
Property insurance offers protection against loss or damage, whether by theft, natural disaster, or accident.  A policy will protect both the physical building and its contents, and most insurers will cover items that are lost or stolen even after they have been removed from the premises—a laptop computer that accompanies you on a business trip, for example.

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